Guidance Software Investors Show Impatience

Guidance Software (NASDAQ: GUID) has a strong suite of software applications, which help manage complex litigation. However, the company has suffered over the past year – and it’s more than just the macroeconomic situation.

In Q1, revenues came to $18.7 million, down 14% from the same period a year ago. In fact, product revenues plunged 24% to $8.4 million.

To deal with the problems, Guidance is focusing more on cost cutting. Already, the company has reduced headcount by 7.5%, providing about $3 million in annual cost savings.

On the revenue side, there were some bright signs. For example, the number of new EnCase eDiscovery customers tripled over the past 12 months. And, because of a new pricing model, the revenues will not likely show up until later quarters.

Something else: the company plans to launch a variety of new products, which will help to boost revenues over the long-run. And there should be help from increases in federal spending.

Going forward, the forecast for the full-year is revenues of $85 to $90 million, with non-GAAP, pre-tax earnings of ($0.08) to $0.09 per share.

But investors are not willing to wait. In Wednesday’s trading, shares of Guidance are down 8% to $3.25.